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Over the weekend the French elections helped spike the futures market and word of some tax reform guidance coming on Wednesday makes investors who were fully invested very happy.  Of course, I am writing this before the market opens on Monday and the futures market was a way of making strategists like me rather foolish.  That said, I am guessing this is going to be a big week for the bulls.

The French election dominated the headlines on Sunday night and there was a good sized move in the futures market.  I saw an open that tested the + 1% level.  That, of course, made me think of my recent tweet that suggested that investors stay out of cash and be fully invested.  Here is the tweet:

 

 

 

The idea was that we were going to be getting some new on tax reform from the Trump Administration this week.  At least that was the rumor on Friday, so the idea of investable dollars sitting on the sidelines made me ill.  I want all that capital to be making a return and with the probability of a big move coming Wednesday, investors that followed this idea are already going to be ahead.

Trump Tax Reform

The media can give a dizzying timeline of “Trump Talk” of a tax reform.  He has made some promises as a candidate and then even statements as POTUS, but the idea is that it is coming.  The question is just when and will it meet or exceed the expectations that Wall Street already has. 

I have seen little as far as expectations go so that in its own right is a win for investors. Any reform is going to be a good reform if more spendable dollars get in the hands of consumers. While big government is the enemy of Trump, it is hard to imagine that reforms will cripple government agencies, which has been a rallying cry of the far left.

A scenario where taxes fall as government shrinks and corporations repatriate cash makes the market smile.  That said, sticking with specific stocks that have significant cash balances overseas is still a bit too hit or miss for me.  For that reason, I like using TNA instead of going straight for the pretty crowded play of Apple (AAPL - Free Report) .

Earnings This Week

With all the earnings that have come and gone so far, it is worth nothing that Alcoa (AA) reports tonight.  The basic material name has been synonymous for starting earnings season, but that is no longer the case. In o

I am going to be watching earnings from T-Mobile (TMUS - Free Report) after the close as the mobile carrier war continues.  I have enjoyed watching the TMUS CEO on Bloomberg and CNBC, but even more so on Periscope where he is truly off the cuff. 

A few more financials report on Tuesday morning and I will be keying in on Northern Trust (NTRS - Free Report) and Fifth Third (FITB - Free Report) .  NTRS is a Zacks Rank #2 (Buy) heading into the report so that gives some confidence they will beat expectations.  FITB is a Zacks Rank #3 (Hold) but has topped the Zacks Consensus Estimate in each of the last four reports.

After the close on Tuesday I will be looking at MACOM Tech (MTSI - Free Report) but not because it is a Zacks Rank #3 (Hold) but because this chip stock has a growth style score of “A.”  I am all about growth and this stock has it and is in the top 9% of industries according to the Zacks Industry Rank.

Thursday has a host of tech stocks reporting, so look for more on that from me tomorrow.

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